Enrollment is expected to drop 2.4%, and that means less money coming in.
The state's largest school district failed to pass its budget Thursday night, pushing the decision off until the end of the month.
But, for months now, ABC13 has been reporting on a program called Level 5 Autonomy, where non-profit organizations will manage four top-performing HISD schools.
The board approved the program in March.
It means nonprofits would pay for specialty teachers, equipment, and scholarships at these schools, but HISD would still have oversight.
According to HISD, the partnerships mean the district will get an additional $1.2 million in state funding.
According to the superintendent's own recently released budget projections, HISD will actually lose $3.8 million through this partnership program.
Eyewitness News has asked district officials to explain where the loss is coming from and why the district is still moving forward with the program.
ABC13 was not given any of those answers.
HISD is projected to lose 4,000 students next year, which the superintendent expects will mean a $50 million cut in funding.
And, even with the district closing 12 schools and cutting 300 positions in its central office, the district still falls short of a balanced budget by about $25 million.
The board is scheduled to vote on the budget in two weeks.